Assets Under Management
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What is AUM?
AUM represents the complete pool of financial assets overseen by an investment manager. This may include private equity commitments, co investment capital, and portfolio assets across multiple funds. Higher AUM generally reflects a more established manager with greater capacity to complete deals and support portfolio companies.
Why is AUM important?
A firm with significant AUM generates stronger fee income, enabling it to resource more activity and execute a greater volume of transactions. For companies seeking investment, the firm’s AUM is an important signal of financial credibility because not all private equity firms operate with committed capital, and some fundraise on a deal by deal basis. Ensuring the chosen investor has sufficient committed assets is essential to confirming they can meet the capital requirements of the transaction.